Barcelona Chamber of Commerce president Joan Canadell has calculated that "40% of all the taxes paid by Catalans do not return to Catalonia". In a Twitter thread, Canadell takes readers through a step-by-step calculation of the fiscal deficit affecting Catalonia. “There are people who don’t believe it, so I’m telling you how to do the sums,” he says. With this exercise, he aims to show "in terms of the major figures, what it means to not have a state of your own" - and, as a consequence, to not be able to manage your own tax revenues.
#FilsdEstiu 12
— Joan Canadell (@jcanadellb) August 20, 2020
El dèficit fiscal català suposa prop del 40% de tots els impostos que paguem els catalans. És a dir, que el 40% de tots els impostos que paguem no reverteixen en Catalunya. Hi ha gent que no s'ho creu i per tant, us explico com calcular-ho aprox. en 5 minuts👇👇
The president of the key Barcelona and Catalonia business body admits, however, that the calculation is a little more complicated than how he presents it. “But what I’m setting out here is a quick, easy-to-understand approach that you can explain to someone who doesn’t believe it,” Canadell justifies.
He de dir que el càlcul real és una mica més complicat però amb el que us exposo tenim una aproximació ràpida i fàcil d'entendre que podeu explicar a qui no s'ho cregui, i també aporto les fonts de càlcul. Som-hi👇👇
— Joan Canadell (@jcanadellb) August 20, 2020
How the fiscal deficit is calculated, according to Canadell
First of all, Canadell proposes a check on the website of the Spanish tax agency to find out the taxes that Catalans pay. "In 2018 (the latest for which we have all the data) Catalans paid 43,039 million euros in tax," says Canadell. According to his calculations, this represents 95% of the total taxes paid, with the remaining 5% being the small proportion of tax revenue areas which are ceded to the Catalan government.
1. Que paguem d'impostos a Catalunya? Ho teniu al web de l'AEAT https://t.co/Flf8YVeKru
— Joan Canadell (@jcanadellb) August 20, 2020
Per l'any 2018 (el darrer que tenim totes les dades) els catalans vam pagar 43.039 milions. Això és aprox el 95% de tots els impostos que paguem, un altre 5% son els cedits a la Generalitat👇
Aside from taxes, the Spanish state also gets into debt and that means that in effect it “has access to more money”. Taking into account the debt of the state in 2018 (2.54%), the part corresponding to Catalonia should thus be "2.1% of GDP more", Canadell calculates. "Therefore, from the original Catalonia 43,039 million euros paid in tax, Catalonia's total part of the state revenue is 47,841 million in 2018," argues the Chamber of Commerce leader.
3. O sigui que el 2,1% del PIB de Catalunya s'hauria d'haver gastat en Catalunya i això suposa 4.802 milions més ja que el nostre PIB va ser de 228.682 milions https://t.co/c6V08yAQv5
— Joan Canadell (@jcanadellb) August 20, 2020
Per tant Catalunya hauria d'haver disposat de 43.039+4.802=47.841 milions al 2018👇👇
However, the actual budget executed in Catalonia in 2018 was 31,588 million, including state investments in Catalonia. “In 2018 we had a‘ fiscal deficit of 16,253 million eruos,” equivalent to 38% of the taxes paid, Canadell concludes. “Now imagine for a moment what those 16,253 million could have meant for us?” he asks.
5. O sigui q el 2018 vam tenir un "dèficit fiscal" de 47.841-31.588=16.253 milions. Tenint en compte que vam pagar 43.039 milions en impostos, el dèficit suposa el 38% dels impostos pagats. Ara imagineu per un moment que representaria tenir els 16.253 milions per nosaltres?👇👇
— Joan Canadell (@jcanadellb) August 20, 2020
To make an approximation of what this would mean, Canadell chooses different spending areas of the Catalan government: "All items in the Education, Health and Labour ministry budgets add up to 16 billion euros." Therefore, he estimates that with the money from the "fiscal deficit" one could "double all social spending" or "reduce taxes by 38% and live at the same level."
7. Reduir el 38% d'impostos és un exercici teòric, però vol dir que tot el que porta un IVA del 21% passaria a reduir-se un 8% el preu final...i a la nòmica si pagueu un 20% d'IRPF us pujaria el sou un 8%. Les empreses un 38% menys d'impost de societats...S'entén la magnitut?👇👇
— Joan Canadell (@jcanadellb) August 20, 2020
With the taxes Catalans pay, "we could among the most advanced"
At the end of the Twitter thread, Canadell reiterates the difficulty of calculating the fiscal deficit in detail. "The calculation of the fiscal deficit is much more complex; for example, we also need to see the balance between pensions and social security contributions, but this exercise serves to show, in terms of the major figures, what it means not to have a state of your own to enjoy the benefit of your own taxes," asserts the Chamber of Commerce president. Furthermore, there is the factor of accumulation over time: Canadell claims that, if this situation had not been endured for "more than 30 years", the situation in Catalonia at present would be very different. "Can you imagine what country we would have now? With the taxes we Catalans pay we could be among the most advanced like the Netherlands, Finland or Denmark," concludes Canadell.
Patim aquestes magnituts més de 30 anys, us imagineu quin país tindriem ara? És obvi q assolir un Estat no és fàcil, xò Catalunya és dins l'estat a la cua d'Europa, i amb els impostos que paguem els catalans podriem ser dels més avançats com Holanda, Finlandia o Dinamarca!!!
— Joan Canadell (@jcanadellb) August 20, 2020
The persistent existence of a large deficit between what Catalonia pays in tax and what it receives back from the Spanish state in investment and services has long been one of the multiple grievances that pro-independence Catalans have used to justify their cause. Opponents, on the other hand, have either denied that such a deficit exists, and/or have dismissed it by playing on the age-old stereotype still widespread in Spain, that Catalans are selfish and greedy.